Karan Goyal's Web World

Wednesday, April 02, 2003

Limited Liability Company

A company is an organization which is created under law to run a lawful business. A company is of many types and one of its kinds is a limited liability company. A limited liability company is a one in which the liability of the shareholders is limited to the nominal value of shares held by them. In case the limited liability company incurs huge debts these share holders can be called upon to pay the unpaid balance of their shares. Limited Liability Company attracts large number of share holders as liability is limited to the nominal value of shares and not to their personal property as it may be in case of other companies.